LT Foods reported a 17% jump in Q2 revenue to INR 3,253 crore, fueled by a 27% growth in its core Basmati and specialty rice segment. While revenue remains strong, EBITDA margins moderated to 11.2% in H1 FY27 due to rising freight costs and increased brand investments. The company maintains a healthy balance sheet with a net cash position of INR 247 crore as of September 2026. Investors should watch the progress of their U.S. ready-to-heat facility and margin recovery in the organic business.
LT Foods Revenue Rises 17% to INR 3,253 Crore in Q2 FY27
Revenue for Q2 FY27 reached INR 3,253 crore, while H1 FY27 PAT stood at INR 364 crore.
Reader Takeaway: Strong top-line growth in basmati rice faces short-term margin pressure from elevated freight costs and brand spending.
What just happened
LT Foods released its H1 FY27 financial results, showing significant expansion in its core basmati and specialty rice segment. The company recorded consolidated revenue of INR 3,253 crore for the September quarter, a 17% increase over the previous year. H1 FY27 revenue reached INR 6,414 crore, marking a 22% year-on-year growth, while Profit After Tax (PAT) grew 9% to INR 364 crore.
Why this matters
The company’s performance highlights its dominance in the basmati segment, which accounts for 90% of total revenue. North America and India remain key growth engines, contributing significantly to the top line. However, the EBITDA margin for H1 stood at 11.2%, down from 11.7% in the previous year, as the company absorbs higher global shipping costs and ramps up marketing investments.
Operational Highlights
Operational efficiency saw a notable improvement, with working capital days dropping to 143 from 174 days in the previous half-year. Inventory management also tightened, with inventory days falling to 160. The company remains in a comfortable financial position with a net cash surplus of INR 247 crore as of September 30, 2026.
Risks to watch
Management cited rising freight costs as a primary concern, which impacted profitability in international markets. Furthermore, the organic segment is currently undergoing a strategic transformation, resulting in a temporary dip in segment revenue. The company is also navigating challenging market conditions in Europe and the UK.
What to track next
Investors should monitor the commissioning of the new Ready-to-Heat (RTH) facility in the U.S. and the success of the company’s push to achieve 13-14% EBITDA margins over the medium term. The transition of the organic business remains a critical factor for long-term margin improvement.